Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40766 | |
Entity Registrant Name | Lightwave Logic, Inc. | |
Entity Central Index Key | 0001325964 | |
Entity Tax Identification Number | 82-0497368 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 369 Inverness Parkway | |
Entity Address, Address Line Two | Suite 350 | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 720 | |
Local Phone Number | 340-4949 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | LWLG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,886,949 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 30,876,646 | $ 24,102,151 |
Prepaid expenses and other current assets | 563,023 | 611,345 |
Loan receivable | 642,120 | |
TOTAL CURRENT ASSETS | 31,439,669 | 25,355,616 |
PROPERTY AND EQUIPMENT - NET | 3,597,111 | 2,519,267 |
OTHER ASSETS | ||
Intangible assets - net | 1,182,693 | 1,030,335 |
Operating Lease - Right of Use - Building | 2,884,544 | 358,254 |
TOTAL OTHER ASSETS | 4,067,237 | 1,388,589 |
TOTAL ASSETS | 39,104,017 | 29,263,472 |
CURRENT LIABILITIES | ||
Accounts payable | 429,520 | 791,671 |
Accrued expenses | 121,134 | 380,280 |
Accounts payable and accrued expenses - related parties | 91,612 | 100,169 |
Deferred revenue | 50,000 | |
Deferred lease liability | 41,778 | 41,778 |
Operating lease liability | 138,434 | 190,125 |
TOTAL CURRENT LIABILITIES | 872,478 | 1,504,023 |
LONG TERM LIABILITIES | ||
Deferred lease liability | 6,963 | 38,297 |
Operating lease liability | 2,804,357 | 168,129 |
TOTAL LONG TERM LIABILITIES | 2,811,320 | 206,426 |
TOTAL LIABILITIES | 3,683,798 | 1,710,449 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.001 par value, 1,000,000 authorized, No shares issued or outstanding | ||
Common stock $0.001 par value, 250,000,000 authorized, 116,683,977 and 112,882,793 issued and outstanding at September 30, 2023 and December 31, 2022 | 116,684 | 112,883 |
Additional paid-in-capital | 158,731,989 | 134,406,825 |
Deferred compensation | (496,737) | (133,324) |
Accumulated deficit | (122,931,717) | (106,833,361) |
TOTAL STOCKHOLDERS' EQUITY | 35,420,219 | 27,553,023 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 39,104,017 | $ 29,263,472 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 116,683,977 | 112,882,793 |
Common stock, shares outstanding | 116,683,977 | 112,882,793 |
STATEMENTS OF COMPREHENSIVE LOS
STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
NET SALES | ||||
COST AND EXPENSE | ||||
Research and development | 4,040,941 | 3,587,692 | 12,006,758 | 8,994,047 |
General and administrative | 1,345,335 | 1,144,624 | 3,879,515 | 3,017,191 |
TOTAL COST AND EXPENSE | 5,386,276 | 4,732,316 | 15,886,273 | 12,011,238 |
LOSS FROM OPERATIONS | (5,386,276) | (4,732,316) | (15,886,273) | (12,011,238) |
OTHER INCOME (EXPENSE) | ||||
Interest income | 246,987 | 29,125 | 403,960 | 57,545 |
Commitment fee | (25,302) | (73,170) | (607,728) | (181,027) |
Other Expense | (27,022) | (8,315) | (27,022) | |
NET LOSS | $ (5,164,591) | $ (4,803,383) | $ (16,098,356) | $ (12,161,742) |
LOSS PER SHARE | ||||
Basic | $ (0.04) | $ (0.04) | $ (0.14) | $ (0.11) |
Diluted | $ (0.04) | $ (0.04) | $ (0.14) | $ (0.11) |
WEIGHTED AVERAGE NUMBER OF SHARES | ||||
Basic | 116,491,837 | 112,111,706 | 114,899,056 | 111,536,100 |
Diluted | 116,491,837 | 112,111,706 | 114,899,056 | 111,536,100 |
STATEMENT OF STOCKHOLDERS' EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Deferred Compensation, Share-Based Payments [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 110,556 | $ 114,696,597 | $ (89,602,881) | $ 25,204,272 | |
Beginning balance, shares at Dec. 31, 2021 | 110,555,459 | ||||
Common stock issued to institutional investor | $ 1,325 | 10,707,968 | 10,709,293 | ||
Common stock issued to institutional investor, shares | 1,325,000 | ||||
Common stock issued for commitment shares | $ 19 | 181,008 | 181,027 | ||
Common stock issued for commitment shares, shares | 19,672 | ||||
Exercise of options | $ 268 | 229,672 | 229,940 | ||
Exercise of options, shares | 268,200 | ||||
Cashless exercise of 4,375 options | $ 3 | 35,015 | 35,018 | ||
Cashless exercise of options, shares | 2,596 | ||||
Exercise of warrants | $ 175 | 240,575 | 240,750 | ||
Exercise of warrants, shares | 175,000 | ||||
Options issued for services | 4,288,172 | 4,288,172 | |||
Restricted stock awards issued for future services | $ 29 | 274,995 | (275,024) | ||
Restricted stock awards issued for future services, shares | 28,500 | ||||
Deferred compensation | 67,467 | 67,467 | |||
Net loss | (12,161,742) | (12,161,742) | |||
Ending balance, value at Sep. 30, 2022 | $ 112,375 | 130,654,002 | (207,557) | (101,764,623) | 28,794,197 |
Ending balance, shares at Sep. 30, 2022 | 112,374,427 | ||||
Beginning balance, value at Jun. 30, 2022 | $ 111,888 | 125,040,332 | (231,803) | (96,961,240) | 27,959,177 |
Beginning balance, shares at Jun. 30, 2022 | 111,887,124 | ||||
Common stock issued to institutional investor | $ 450 | 4,003,150 | 4,003,600 | ||
Common stock issued to institutional investor, shares | 450,000 | ||||
Common stock issued for commitment shares | $ 7 | 73,163 | 73,170 | ||
Common stock issued for commitment shares, shares | 7,353 | ||||
Exercise of options | $ 30 | 47,735 | 47,765 | ||
Exercise of options, shares | 29,950 | ||||
Options issued for services | 1,489,622 | 1,489,622 | |||
Deferred compensation | 24,246 | 24,246 | |||
Net loss | (4,803,383) | (4,803,383) | |||
Ending balance, value at Sep. 30, 2022 | $ 112,375 | 130,654,002 | (207,557) | (101,764,623) | 28,794,197 |
Ending balance, shares at Sep. 30, 2022 | 112,374,427 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 112,883 | 134,406,825 | (133,324) | (106,833,361) | 27,553,023 |
Beginning balance, shares at Dec. 31, 2022 | 112,882,793 | ||||
Common stock issued to institutional investor | $ 2,750 | 16,061,159 | 16,063,909 | ||
Common stock issued to institutional investor, shares | 2,750,400 | ||||
Common stock issued for commitment shares | $ 100 | 607,628 | 607,728 | ||
Common stock issued for commitment shares, shares | 99,407 | ||||
Common stock sales at the market by investment banking company | $ 172 | 1,378,302 | 1,378,474 | ||
Common stock sales at the market by investment banking company, shares | 172,115 | ||||
Exercise of options | $ 504 | 466,820 | 467,324 | ||
Exercise of options, shares | 504,408 | ||||
Exercise of warrants | $ 169 | 164,581 | 164,750 | ||
Exercise of warrants, shares | 169,000 | ||||
Options issued for services | 5,085,114 | 5,085,114 | |||
Restricted stock awards issued for future services | $ 106 | 561,560 | (561,666) | ||
Restricted stock awards issued for future services, shares | 105,854 | ||||
Deferred compensation | 198,253 | 198,253 | |||
Net loss | (16,098,356) | (16,098,356) | |||
Ending balance, value at Sep. 30, 2023 | $ 116,684 | 158,731,989 | (496,737) | (122,931,717) | 35,420,219 |
Ending balance, shares at Sep. 30, 2023 | 116,683,977 | ||||
Beginning balance, value at Jun. 30, 2023 | $ 116,185 | 154,946,488 | (519,466) | (117,767,126) | 36,776,081 |
Beginning balance, shares at Jun. 30, 2023 | 116,184,724 | ||||
Common stock issued to institutional investor | $ 175 | 1,113,325 | 1,113,500 | ||
Common stock issued to institutional investor, shares | 175,000 | ||||
Common stock issued for commitment shares | $ 4 | 25,298 | 25,302 | ||
Common stock issued for commitment shares, shares | 3,777 | ||||
Common stock sales at the market by investment banking company | $ 97 | 734,848 | 734,945 | ||
Common stock sales at the market by investment banking company, shares | 97,115 | ||||
Exercise of options | $ 198 | 160,825 | 161,023 | ||
Exercise of options, shares | 198,123 | ||||
Exercise of warrants | $ 19 | 14,231 | 14,250 | ||
Exercise of warrants, shares | 19,000 | ||||
Options issued for services | 1,695,310 | 1,695,310 | |||
Restricted stock awards issued for future services | $ 6 | 41,664 | (41,670) | ||
Restricted stock awards issued for future services, shares | 6,238 | ||||
Deferred compensation | 64,399 | 64,399 | |||
Net loss | (5,164,591) | (5,164,591) | |||
Ending balance, value at Sep. 30, 2023 | $ 116,684 | $ 158,731,989 | $ (496,737) | $ (122,931,717) | $ 35,420,219 |
Ending balance, shares at Sep. 30, 2023 | 116,683,977 |
STATEMENT OF STOCKHOLDERS' EQ_2
STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) | 9 Months Ended |
Sep. 30, 2022 shares | |
Statement of Stockholders' Equity [Abstract] | |
Cashless exercise of options | 4,375 |
STATEMENTS OF CASH FLOW (UNAUDI
STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (16,098,356) | $ (12,161,742) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock options issued for services | 5,085,114 | 4,288,172 |
Amortization of deferred compensation | 198,253 | 67,467 |
Cashless option exercise | 53,219 | |
Common stock issued for services and fees | 607,728 | 181,027 |
Depreciation and amortization of patents | 797,500 | 758,285 |
Amortization of right of use asset | 138,502 | 132,556 |
Loss on disposal of property and equipment | 581 | |
(Increase) decrease in assets | ||
Prepaid expenses and other current assets | 87,058 | (414,766) |
(Decrease) increase in liabilities | ||
Accounts payable | (362,151) | 367,048 |
Accrued expenses | (259,146) | (1,004,081) |
Accounts payable and accrued expenses- related parties | (8,557) | 131,368 |
Deferred revenue | 50,000 | |
Deferred lease liability | (31,334) | (31,334) |
Operating lease liability | (118,990) | (132,556) |
Net cash used in operating activities | (9,913,798) | (7,765,337) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cost of intangibles | (215,061) | (47,705) |
Purchase of property and equipment | (1,813,813) | (1,171,530) |
Loan repayment | 642,120 | (588,180) |
Sale of property and equipment | 590 | |
Net cash used in investing activities | (1,386,164) | (1,807,415) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Exercise of options and warrants | 632,074 | 470,690 |
Cashless option exercise tax payments | (18,201) | |
Issuance of common stock, institutional investor | 16,063,909 | 10,709,293 |
At the market sale by investment banking company | 1,378,474 | |
Net cash provided by financing activities | 18,074,457 | 11,161,782 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 6,774,495 | 1,589,030 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 24,102,151 | 23,432,612 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 30,876,646 | 25,021,642 |
Supplemental Disclosure of Non-cash investing and financing activities: | ||
Amended Operating Lease - Right of Use - Building and Operating lease liability | $ 2,703,527 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1- NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statements The accompanying unaudited financial statements have been prepared by Lightwave Logic, Inc. (the “Company”). These statements include all adjustments (consisting only of its normal recurring adjustments) which management believes necessary for a fair presentation of the statements and have been prepared on a consistent basis using the accounting polices described in the Summary of Significant Accounting Policies included in the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 1, 2023 (the “2022 Annual Report”). Certain financial information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company firmly believes that the accompanying disclosures are adequate to make the information presented not misleading. The financial statements should be read in conjunction with the financial statements and notes thereto included in the 2022 Annual Report. The interim operating results for the three and nine months ending September 30, 2023 may not be indicative of operating results expected for the full year. Nature of Business Lightwave Logic, Inc. is a technology company focused on the development of next generation photonic devices and electro-optic polymer materials systems for applications in high speed fiber-optic data communications, telecommunications and optical computing markets. The Company's first revenue stream is from a technology material supply and licensing agreement that incorporates the Company's patented electro-optic polymer materials for use in manufacturing photonic devices. Currently the Company is in various stages of photonic device and materials development and evaluation with potential customers and strategic partners. The Company expects to obtain additional revenue from material supply and licensing agreements, technology transfer agreements and the production and direct sale of its own photonic devices. The Company’s current development activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company’s technology now under development. Revenue Recognition In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue upon transfer of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of FASB ASC 606, the Company performs the following five steps: 1. Identify the contract with the customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue as (or when) the performance obligations are satisfied. For product sales, revenue will be recognized at a point in time when the product is shipped or is delivered to the customer’s location. For services performed, revenue will be recognized at a point in time when the service is performed. However, for certain contracts, revenue will be recognized over time as the customer simultaneously receives and consumes the benefits of performance as the Company performs the service. For license agreements, each contract is reviewed to determine the portion of the revenue recognition at the point in time that the license is transferred to the customer and the portion of the revenue recognition to be recognized over time. Stock-based Payments The Company accounts for stock-based compensation under which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The fair value of restricted stock awards is estimated by the market price of the Company’s common stock at the date of grant. Restricted stock awards are being amortized to expense over the vesting period. The Company estimates the fair value of option and warrant awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (the “2018 Update). The amendments in the 2018 Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Prior to the 2018 Update, Topic 718 applied only to share- based transactions to employees. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The Company has elected to account for forfeiture of stock-based awards as they occur. Loss Per Share The Company follows FASB ASC 260, “Earnings per Share”, resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss in 2023 and 2022, common stock equivalents, including stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive loss per share were the same. Comprehensive Income The Company follows FASB ASC 220.10, “Reporting Comprehensive Income (Loss).” Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss). Recently Issued Accounting Pronouncements Not Yet Adopted As of September 30, 2023, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements. Recently Adopted Accounting Pronouncements As of September 30, 2023 and for the period then ended, there are no recently adopted accounting standards that have a material effect on the Company’s financial statements. Reclassifications Certain reclassifications have been made to the 2022 financial statement in order to conform to the 2023 financial statement presentation. |
MANAGEMENT_S PLANS
MANAGEMENT’S PLANS | 9 Months Ended |
Sep. 30, 2023 | |
Managements Plans | |
MANAGEMENT’S PLANS | NOTE 2 – MANAGEMENT’S PLANS Our future expenditures and capital requirements will depend on numerous factors, including: the progress of our research and development efforts; the rate at which we can, directly or through arrangements with original equipment manufacturers, introduce and sell products incorporating our polymer materials technology; the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; market acceptance of our products and competing technological developments; and our ability to establish cooperative development, joint venture and licensing arrangements. We expect that we will incur approximately $ 1,750,000 30,000,000 876,250 16,907,148 35,000,000 33,578,860 incorporates the Company's patented electro-optic polymer materials for use in manufacturing photonic devices |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 3 – REVENUE The Company's first commercial agreement occurred in May 2023, the form of a (4) year material supply and license agreement (the “License Agreement”) that incorporates the Company's patented electro-optic polymer materials for use in manufacturing photonic devices (the “Licensed Product”). The licensee shall pay the Company a running royalty with a minimum royalty paid on an annual basis over the term of the License Agreement. Additional future revenue will be generated from royalties from the licensee’s sale of Licensed Product that exceed the minimum royalty payments. The License Agreement is a non-exclusive material supply and license agreement. Timing of Revenue Recognition and Contract Balances All revenues are recognized over time commencing with the License Agreement in May 2023. No 50,000 Contract balances are as follows: Schedule of contract balances September 30, 2023 December 31, 2022 Accounts receivable, net $ — $ — Short-term contract assets $ — $ — Long-term contract assets $ — $ — Short-term liability deferred revenue $ 50,000 $ — Long-term liability deferred revenue $ — $ — Assets Recognized for the Costs to Obtain a Contract There are no assets recognized for the costs to obtain the License Agreement. |
LOAN RECEIVABLE
LOAN RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
LOAN RECEIVABLE | NOTE 4 – LOAN RECEIVABLE On September 7, 2022, the Company entered into a convertible loan agreement (the “Loan”) with an entity and issued a loan on September 12, 2022 in the amount of EUR 600,000 7 March 31, 2023 0 11,125 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: Schedule of prepaid expenses and other current assets September 30, 2023 December 31, 2022 Insurance $ 316,315 $ 218,767 License 79,357 94,195 Prototype devices 40,473 40,473 Lease incentive receivable 38,736 — Rent 36,525 36,525 Investor relations 33,433 18,250 Other 18,184 45,675 Legal — 83,941 Deposit for equipment — 59,850 Loan interest receivable — 13,669 Prepaid expenses and other current assets $ 563,023 $ 611,345 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment consist of the following: Schedule of property and equipment September 30, 2023 December 31, 2022 Office equipment $ 136,734 $ 119,404 Lab equipment 7,852,126 6,234,777 Furniture 74,119 33,128 Leasehold Improvements 321,815 184,843 8,384,794 6,572,152 Less: Accumulated depreciation 4,787,683 4,052,885 $ 3,597,111 $ 2,519,267 Depreciation expense for the nine months ending September 30, 2023 and 2022 was $ 734,798 699,423 242,454 246,507 590 581 70,963 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 – INTANGIBLE ASSETS This represents legal fees and patent fees associated with the prosecution of patent applications. The Company has recorded amortization expense on patents granted, which are amortized over the remaining legal life. Maintenance patent fees are paid to a government patent authority to maintain a granted patent in force. Some countries require the payment of maintenance fees for pending patent applications. Maintenance fees paid after a patent is granted are expensed, as these are considered ongoing costs to “maintain a patent”. Maintenance fees paid prior to a patent grant date are capitalized to patent costs, as these are considered “patent application costs”. No amortization expense has been recorded on the remaining patent applications since patents on these applications have yet to be granted. Patents consist of the following: Schedule of patents September 30, 2023 December 31, 2022 Patents $ 1,821,124 $ 1,606,064 Less: Accumulated amortization 638,431 575,729 Total intangible assets $ 1,182,693 $ 1,030,335 Amortization expense for the nine months ending September 30, 2023 and 2022 was $ 62,703 58,862 24,000 15,229 no |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
LEASES | NOTE 8 – LEASES On October 30, 2017, the Company entered into a lease agreement to lease approximately 13,420 square feet of office, chemistry, clean room and research and development space located in Colorado for the Company’s principal executive offices and research and development facility. The term of the lease was sixty one ( 61 November 1, 2017 November 30, 2022 24 168,824 3 347,045 186,293 36,525 260,000 Due to the adoption of the new lease standard, the Company has capitalized the present value of the minimum lease payments commencing November 1, 2019, including the additional option period using an estimated incremental borrowing rate of 6.5 As of January 1, 2019 the operating lease right-of-use asset and operating lease liability amounted to $ 885,094 On November 22, 2022, the Company entered into an amendment to the Lease (“the Amended Lease”) to lease an additional approximately 9,684 square feet of adjacent office and warehouse space. The term of the Amended Lease is one hundred twenty ( 128 June 1, 2023 30,517 377,288 3 38,736 2,945,322 The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases. There are no other material operating leases. The Company is obligated under the Amended Lease for office, chemistry, clean room and research and development space. The aggregate minimum future lease payments under the Amended Lease, including the extended term are as follows: Schedule of future lease payments of operating leases YEARS ENDING DECEMBER 31, AMOUNT 2023 $ 91,550 2024 376,364 2025 387,666 2026 399,199 2027 411,174 Thereafter 2,781,183 4,447,136 Less discounted interest (1,504,345 ) TOTAL $ 2,942,791 Rent expense amounting to $ 160,660 53,553 103,796 34,599 85,104 28,368 34,599 11,533 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 – INCOME TAXES There is no The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2023, the Company had no unrecognized tax benefits, or any tax related interest or penalties. There were no |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 10 – STOCKHOLDERS’ EQUITY Preferred Stock Pursuant to the Company’s Articles of Incorporation, the Company’s board of directors is empowered, without stockholder approval, to issue series of preferred stock with any designations, rights and preferences as they may from time to time determine. The rights and preferences of this preferred stock may be superior to the rights and preferences of the Company’s common stock; consequently, preferred stock, if issued could have dividend, liquidation, conversion, voting or other rights that could adversely affect the voting power or other rights of the common stock. Additionally, preferred stock, if issued, could be utilized, under special circumstances, as a method of discouraging, delaying or preventing a change in control of the Company’s business or a takeover from a third party. Common Stock Options and Warrants In January 2019, the Company signed a purchase agreement with the institutional investor to sell up to $ 25,000,000 9,500,000 350,000 258,125 812,500 6,000,000 8,000,000 22,337,500 23,773,924 772,666 1,575,509 39,834 no On July 2, 2021, the Company filed a $100,000,000 universal shelf registration statement with the U.S. Securities and Exchange Commission which became effective on July 9, 2021. On October 4, 2021, the Company entered into a purchase agreement with the institutional investor to sell up to $ 33,000,000 30,312 279,174 60,623 3,632,456 33,000,000 60,623 694,531 779,945 3,847,307 7,069 38,161 On February 28, 2023, the Company entered into a purchase agreement with an institutional investor to sell up to $ 30,000,000 50,891 279,391 101,781 1,970,455 12,216,602 41,447 290,176 175,000 1,113,500 3,777 25,302 200,000 876,250 2,972 14,221 57,362 On December 9, 2022, the Company entered into a sales agreement with an investment banking company. In accordance with the terms of this sales agreement, the Company may offer and sell shares of its common stock having an aggregate offering price of up to $ 35,000,000 3 172,115 1,378,474 42,634 97,115 734,945 22,731 Restricted Stock Awards On March 16, 2023, the Compensation Committee of the Board of Directors approved grants totaling 99,616 5.22 8,338 2,766 On August 1, 2023, the Compensation Committee of the Board of Directors approved a grant totaling 6,238 6.68 218 215 Upon the occurrence of a Change in Control, 100% of the unvested Restricted Stock shall vest as of the date of the Change in Control. Upon vesting, the restrictions on the shares lapse. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | NOTE 11 – STOCK BASED COMPENSATION During 2007, the Board of Directors of the Company adopted the 2007 Employee Stock Plan (“2007 Plan”) that was approved by the shareholders. Under the 2007 Plan, the Company is authorized to grant options to purchase up to 10,000,000 Effective June 24, 2016, the 2007 Plan was terminated. As of September 30, 2023, options to purchase 2,473,000 During 2016, the Board of Directors of the Company adopted the 2016 Plan that was approved by the shareholders at the 2016 annual meeting of shareholders on May 20, 2016. Under the 2016 Plan, the Company is authorized to grant awards of incentive and non-qualified stock options and restricted stock to purchase up to 3,000,000 shares of common stock to employees, directors and consultants. Effective May 16, 2019, the number of shares of the Company’s common stock available for issuance under the 2016 Plan was increased from 3,000,000 8,000,000 8,000,000 13,000,000 6,022,307 129,174 5,497,284 Both plans are administered by the Company’s Board of Directors or its compensation committee which determines the persons to whom awards will be granted, the number of awards to be granted, and the specific terms of each grant. Subject to the provisions regarding Ten Percent Shareholders, (as defined in the 2016 Plan), the exercise price per share of each option cannot be less than 100% of the fair market value of a share of common stock on the date of grant. Options granted under the 2016 Plan are generally exercisable for a period of 10 The Company uses the Black-Scholes no 73.7 77.2 3.37 4.27 10 As of September 30, 2023, there was $ 3,866,879 Share-based compensation was recognized as follows: Schedule of stock-based compensation plans For the Nine For the Nine Months Ending Months Ending September 30, 2023 September 30, 2022 2007 Employee Stock Option Plan $ — $ — 2016 Equity Incentive Plan 5,085,114 4,288,172 2016 Equity Incentive Plan restricted stock awards 198,253 67,467 Warrants — — Total share-based compensation $ 5,283,367 $ 4,355,639 The following tables summarize all stock option and warrant activity of the Company during the nine months ended September 30, 2023: Schedule of non-qualified stock options and warrants outstanding and exercisable Number of Exercise Weighted Average Shares Price Exercise Price Outstanding, December 31, 2022 8,073,173 $ 0.51 16.81 $ 1.91 Granted 1,751,667 $ 4.28 7.67 $ 5.29 Forfeited (37,125 ) $ 6.25 8.93 $ 7.13 Exercised (673,408 ) $ 0.67 5.22 $ 0.94 Outstanding, September 30, 2023 9,114,307 $ 0.51 16.81 $ 2.61 Exercisable, September 30, 2023 8,113,938 $ 0.51 16.81 $ 2.24 The aggregate intrinsic value of options and warrants outstanding and exercisable as of September 30, 2023 was $ 23,062,130 4.47 504,408 467,324 169,000 164,750 Schedule of non-qualified stock options and warrants outstanding, by exercise price range Non-Qualified Stock Options and Warrants Outstanding Range of Exercise Prices Number Outstanding Currently Exercisable at September 30, 2023 Weighted Average Remaining Contractual Life Weighted Average Exercise Price of Options and Warrants Currently Exercisable $ 0.51 16.81 8,113,938 5.28 $ 2.24 The fair value of restricted stock awards is estimated by the market price of the Company’s common stock at the date of grant. Restricted stock activity during the nine month period ending September 30, 2023 is as follows: Schedule of nonvested restricted stock units activity Restricted Stock Awards Nine month period ended September 30, 2023 Weighted Average Number of Fair Value Shares per Share Non-vested, beginning of period 13,816 $ 9.65 Granted 105,854 5.31 Vested (25,367 ) 5.24 Cancelled and forfeited — — Non-vested, end of period 94,303 $ 5.96 Restricted stock awards are being amortized to expense over the vesting period. As of September 30, 2023 and 2022, the unamortized value of the restricted stock awards was $ 496,736 0 |
RELATED PARTY
RELATED PARTY | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | NOTE 12 – RELATED PARTY At September 30, 2023 the Company had a legal accrual to related party of $ 99,500 10,550 7,962 26,400 60,577 18,000 13,500 4,859 3,233 |
RETIREMENT PLAN
RETIREMENT PLAN | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | NOTE 13 – RETIREMENT PLAN The Company established a 401(k) retirement plan covering all eligible employees beginning November 15, 2013. For the nine months ending September 30, 2023 and 2022, a contribution of $ 51,413 40,585 18,554 13,498 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS During October 2023, the licensee requisitioned material under the material supply and license agreement that incorporates the Company’s patented electro-optic polymer materials for use in manufacturing photonic devices. |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Insider Trading Arrangements | |
Insider Trading Arrangements | Trading Arrangements Insider Trading Arrangements On July 19, 2023, Fred Leonberger, a member of our Company’s Board of Directors, adopted as defined in Item 408(c) of Regulation S-K. 49,000 terminated |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Financial Statements | Financial Statements The accompanying unaudited financial statements have been prepared by Lightwave Logic, Inc. (the “Company”). These statements include all adjustments (consisting only of its normal recurring adjustments) which management believes necessary for a fair presentation of the statements and have been prepared on a consistent basis using the accounting polices described in the Summary of Significant Accounting Policies included in the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 1, 2023 (the “2022 Annual Report”). Certain financial information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company firmly believes that the accompanying disclosures are adequate to make the information presented not misleading. The financial statements should be read in conjunction with the financial statements and notes thereto included in the 2022 Annual Report. The interim operating results for the three and nine months ending September 30, 2023 may not be indicative of operating results expected for the full year. |
Nature of Business | Nature of Business Lightwave Logic, Inc. is a technology company focused on the development of next generation photonic devices and electro-optic polymer materials systems for applications in high speed fiber-optic data communications, telecommunications and optical computing markets. The Company's first revenue stream is from a technology material supply and licensing agreement that incorporates the Company's patented electro-optic polymer materials for use in manufacturing photonic devices. Currently the Company is in various stages of photonic device and materials development and evaluation with potential customers and strategic partners. The Company expects to obtain additional revenue from material supply and licensing agreements, technology transfer agreements and the production and direct sale of its own photonic devices. The Company’s current development activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company’s technology now under development. |
Revenue Recognition | Revenue Recognition In accordance with FASB ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue upon transfer of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of FASB ASC 606, the Company performs the following five steps: 1. Identify the contract with the customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue as (or when) the performance obligations are satisfied. For product sales, revenue will be recognized at a point in time when the product is shipped or is delivered to the customer’s location. For services performed, revenue will be recognized at a point in time when the service is performed. However, for certain contracts, revenue will be recognized over time as the customer simultaneously receives and consumes the benefits of performance as the Company performs the service. For license agreements, each contract is reviewed to determine the portion of the revenue recognition at the point in time that the license is transferred to the customer and the portion of the revenue recognition to be recognized over time. |
Stock-based Payments | Stock-based Payments The Company accounts for stock-based compensation under which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The fair value of restricted stock awards is estimated by the market price of the Company’s common stock at the date of grant. Restricted stock awards are being amortized to expense over the vesting period. The Company estimates the fair value of option and warrant awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (the “2018 Update). The amendments in the 2018 Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Prior to the 2018 Update, Topic 718 applied only to share- based transactions to employees. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The Company has elected to account for forfeiture of stock-based awards as they occur. |
Loss Per Share | Loss Per Share The Company follows FASB ASC 260, “Earnings per Share”, resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss in 2023 and 2022, common stock equivalents, including stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive loss per share were the same. |
Comprehensive Income | Comprehensive Income The Company follows FASB ASC 220.10, “Reporting Comprehensive Income (Loss).” Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss). |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted As of September 30, 2023, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements As of September 30, 2023 and for the period then ended, there are no recently adopted accounting standards that have a material effect on the Company’s financial statements. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2022 financial statement in order to conform to the 2023 financial statement presentation. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract balances | Schedule of contract balances September 30, 2023 December 31, 2022 Accounts receivable, net $ — $ — Short-term contract assets $ — $ — Long-term contract assets $ — $ — Short-term liability deferred revenue $ 50,000 $ — Long-term liability deferred revenue $ — $ — |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Schedule of prepaid expenses and other current assets September 30, 2023 December 31, 2022 Insurance $ 316,315 $ 218,767 License 79,357 94,195 Prototype devices 40,473 40,473 Lease incentive receivable 38,736 — Rent 36,525 36,525 Investor relations 33,433 18,250 Other 18,184 45,675 Legal — 83,941 Deposit for equipment — 59,850 Loan interest receivable — 13,669 Prepaid expenses and other current assets $ 563,023 $ 611,345 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment September 30, 2023 December 31, 2022 Office equipment $ 136,734 $ 119,404 Lab equipment 7,852,126 6,234,777 Furniture 74,119 33,128 Leasehold Improvements 321,815 184,843 8,384,794 6,572,152 Less: Accumulated depreciation 4,787,683 4,052,885 $ 3,597,111 $ 2,519,267 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of patents | Schedule of patents September 30, 2023 December 31, 2022 Patents $ 1,821,124 $ 1,606,064 Less: Accumulated amortization 638,431 575,729 Total intangible assets $ 1,182,693 $ 1,030,335 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of future lease payments of operating leases | Schedule of future lease payments of operating leases YEARS ENDING DECEMBER 31, AMOUNT 2023 $ 91,550 2024 376,364 2025 387,666 2026 399,199 2027 411,174 Thereafter 2,781,183 4,447,136 Less discounted interest (1,504,345 ) TOTAL $ 2,942,791 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation plans | Schedule of stock-based compensation plans For the Nine For the Nine Months Ending Months Ending September 30, 2023 September 30, 2022 2007 Employee Stock Option Plan $ — $ — 2016 Equity Incentive Plan 5,085,114 4,288,172 2016 Equity Incentive Plan restricted stock awards 198,253 67,467 Warrants — — Total share-based compensation $ 5,283,367 $ 4,355,639 |
Schedule of non-qualified stock options and warrants outstanding and exercisable | Schedule of non-qualified stock options and warrants outstanding and exercisable Number of Exercise Weighted Average Shares Price Exercise Price Outstanding, December 31, 2022 8,073,173 $ 0.51 16.81 $ 1.91 Granted 1,751,667 $ 4.28 7.67 $ 5.29 Forfeited (37,125 ) $ 6.25 8.93 $ 7.13 Exercised (673,408 ) $ 0.67 5.22 $ 0.94 Outstanding, September 30, 2023 9,114,307 $ 0.51 16.81 $ 2.61 Exercisable, September 30, 2023 8,113,938 $ 0.51 16.81 $ 2.24 |
Schedule of non-qualified stock options and warrants outstanding, by exercise price range | Schedule of non-qualified stock options and warrants outstanding, by exercise price range Non-Qualified Stock Options and Warrants Outstanding Range of Exercise Prices Number Outstanding Currently Exercisable at September 30, 2023 Weighted Average Remaining Contractual Life Weighted Average Exercise Price of Options and Warrants Currently Exercisable $ 0.51 16.81 8,113,938 5.28 $ 2.24 |
Schedule of nonvested restricted stock units activity | Schedule of nonvested restricted stock units activity Restricted Stock Awards Nine month period ended September 30, 2023 Weighted Average Number of Fair Value Shares per Share Non-vested, beginning of period 13,816 $ 9.65 Granted 105,854 5.31 Vested (25,367 ) 5.24 Cancelled and forfeited — — Non-vested, end of period 94,303 $ 5.96 |
MANAGEMENT_S PLANS (Details Nar
MANAGEMENT’S PLANS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Dec. 09, 2022 | Nov. 30, 2023 | Sep. 30, 2023 | Feb. 28, 2023 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Expected expenditures per month | $ 1,750,000 | |||
Purchase Agreement [Member] | Forecast [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Purchase agreement amount received | $ 876,250 | |||
Agreement to sell invest common stock value remaining amount available | 16,907,148 | |||
Sales Agreement [Member] | Forecast [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Agreement to sell invest common stock value remaining amount available | $ 33,578,860 | |||
Institutional Investor [Member] | Purchase Agreement [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Agreement to sell invest common stock value upper limit instutional investor | $ 30,000,000 | |||
Institutional Investor [Member] | Sales Agreement [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Aggregate offering price | $ 35,000,000 |
REVENUE (Details - Contract bal
REVENUE (Details - Contract balances) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | ||
Short-term contract assets | ||
Long-term contract assets | ||
Short-term liability deferred revenue | 50,000 | |
Long-term liability deferred revenue |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue | $ 0 | $ 0 |
License paid | $ 50,000 |
LOAN RECEIVABLE (Details Narrat
LOAN RECEIVABLE (Details Narrative) - Convertible Loan Agreement [Member] | 3 Months Ended | 9 Months Ended | |
Sep. 12, 2022 EUR (€) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Principal amount | € | € 600,000 | ||
Interest rate | 7% | ||
Maturity date | Mar. 31, 2023 | ||
Interest income | $ | $ 0 | $ 11,125 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details - Prepaid expenses and other current assets) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance | $ 316,315 | $ 218,767 |
License | 79,357 | 94,195 |
Prototype devices | 40,473 | 40,473 |
Lease incentive receivable | 38,736 | |
Rent | 36,525 | 36,525 |
Investor relations | 33,433 | 18,250 |
Other | 18,184 | 45,675 |
Legal | 83,941 | |
Deposit for equipment | 59,850 | |
Loan interest receivable | 13,669 | |
Prepaid expenses and other current assets | $ 563,023 | $ 611,345 |
PROPERTY AND EQUIPMENT (Propert
PROPERTY AND EQUIPMENT (Property and equipment) (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 8,384,794 | $ 6,572,152 |
Less: Accumulated depreciation | 4,787,683 | 4,052,885 |
Property and equipment net | 3,597,111 | 2,519,267 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 136,734 | 119,404 |
Other Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 7,852,126 | 6,234,777 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 74,119 | 33,128 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 321,815 | $ 184,843 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 242,454 | $ 246,507 | $ 734,798 | $ 699,423 |
Retire property and equipment | 590 | |||
Loss on sale of property and equipment | $ 581 | |||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Retire property and equipment | $ 70,963 | $ 70,963 |
INTANGIBLE ASSETS (Details - Pa
INTANGIBLE ASSETS (Details - Patents) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents | $ 1,821,124 | $ 1,606,064 |
Less: Accumulated amortization | 638,431 | 575,729 |
Total intangible assets | $ 1,182,693 | $ 1,030,335 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 24,000 | $ 15,229 | $ 62,703 | $ 58,862 |
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Patent costs written off | $ 0 | $ 0 | $ 0 | $ 0 |
LEASES (Details - Future lease
LEASES (Details - Future lease payments) | Sep. 30, 2023 USD ($) |
Leases | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 91,550 |
2024 | 376,364 |
2025 | 387,666 |
2026 | 399,199 |
2027 | 411,174 |
Thereafter | 2,781,183 |
Lessee operating lease liability to be paid | 4,447,136 |
Less discounted interest | (1,504,345) |
Total | $ 2,942,791 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Nov. 22, 2022 | Nov. 01, 2019 | Nov. 01, 2017 | Oct. 30, 2017 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 01, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Jan. 02, 2019 | |
Lease term of contract | 128 months | 61 months | ||||||||||
Lease term beginning | Nov. 01, 2017 | |||||||||||
Lease term | Jun. 01, 2023 | Nov. 30, 2022 | ||||||||||
Extended lease term | 24 months | |||||||||||
Amended lease term | $ 377,288 | $ 168,824 | ||||||||||
Percentage of rent increase annual base rent | 3% | 3% | ||||||||||
Prepaid Rents | $ 347,045 | |||||||||||
Proportionate share of operating expenses | 186,293 | |||||||||||
Security deposit | $ 36,525 | |||||||||||
Consideration received | $ 260,000 | |||||||||||
Percentage of estimated incremental borrowing rate | 6.50% | |||||||||||
Operating lease right of use asset | $ 2,884,544 | $ 2,884,544 | $ 2,945,322 | $ 358,254 | $ 885,094 | |||||||
Base rent | $ 30,517 | |||||||||||
Lease allowance | $ 38,736 | |||||||||||
Research and Development Expense [Member] | ||||||||||||
Rent expense | 85,104 | $ 34,599 | 160,660 | $ 103,796 | ||||||||
General and Administrative Expense [Member] | ||||||||||||
Rent expense | $ 28,368 | $ 11,533 | $ 53,553 | $ 34,599 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ 0 | $ 0 |
Unrecognized tax benefits | $ 0 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 24 Months Ended | 45 Months Ended | |||||||||||
Nov. 30, 2023 | Aug. 01, 2023 | Mar. 16, 2023 | Feb. 28, 2023 | Dec. 09, 2022 | Oct. 04, 2021 | Jan. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 20, 2020 | Feb. 04, 2020 | Feb. 13, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Number of value issued | $ 25,302 | $ 73,170 | $ 607,728 | $ 181,027 | |||||||||||||
Sales Agreement [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 97,115 | 172,115 | |||||||||||||||
Payments for Commissions | $ 734,945 | $ 1,378,474 | |||||||||||||||
Investment Banking Revenue | $ 22,731 | $ 42,634 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Option granted | 6,238 | 99,616 | |||||||||||||||
Grant date fair value | $ 6.68 | $ 5.22 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Two Thousand Sixteen Equity Incentive Plan [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Vested due next twelve months | 218 | 8,338 | |||||||||||||||
Remaining vested due next twelve months | 215 | 2,766 | |||||||||||||||
Institutional Investor [Member] | Sales Agreement [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
[custom:AggregateOfferingPrice] | $ 35,000,000 | ||||||||||||||||
[custom:AgreementCommisionRate] | 3% | ||||||||||||||||
Institutional Investor [Member] | Two Thousand Nineteen Purchase Agreement [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Agreement with an institutional investor to sell common stock and investor | $ 25,000,000 | ||||||||||||||||
Registering shares of common stock | 8,000,000 | 6,000,000 | 9,500,000 | ||||||||||||||
Common stock issued to institutional investor as commitment fee, shares | 350,000 | ||||||||||||||||
Common stock issued to institutional investor as commitment fee | $ 258,125 | ||||||||||||||||
Common stock reserved for additional commitment fees to the institutional investor | 812,500 | 39,834 | |||||||||||||||
Number of shares issued | 0 | 0 | 22,337,500 | ||||||||||||||
Number of value issued | $ 23,773,924 | ||||||||||||||||
Additional shares issued | 772,666 | ||||||||||||||||
Additional shares issued amount | $ 1,575,509 | ||||||||||||||||
Institutional Investor [Member] | Two Thousand Twenty One Purchase Agreement [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Common stock reserved for additional commitment fees to the institutional investor | 60,623 | ||||||||||||||||
Number of shares issued | 779,945 | 3,632,456 | |||||||||||||||
Number of value issued | $ 3,847,307 | $ 33,000,000 | |||||||||||||||
Additional shares issued | 30,312 | 7,069 | 60,623 | ||||||||||||||
Additional shares issued amount | $ 279,174 | ||||||||||||||||
Agreement to sell invest common stock value upper limit instutional investor | $ 33,000,000 | ||||||||||||||||
Additional value issued amount | $ 38,161 | $ 694,531 | |||||||||||||||
Institutional Investor [Member] | Two Thousand Twenty Three Purchase Agreement [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Common stock reserved for additional commitment fees to the institutional investor | 101,781 | ||||||||||||||||
Number of shares issued | 175,000 | 1,970,455 | |||||||||||||||
Number of value issued | $ 1,113,500 | $ 12,216,602 | |||||||||||||||
Additional shares issued | 50,891 | 3,777 | 41,447 | ||||||||||||||
Additional shares issued amount | $ 279,391 | $ 25,302 | $ 290,176 | ||||||||||||||
Agreement to sell invest common stock value upper limit instutional investor | $ 30,000,000 | ||||||||||||||||
Institutional Investor [Member] | Two Thousand Twenty Three Purchase Agreement [Member] | Forecast [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Common stock reserved for additional commitment fees to the institutional investor | 57,362 | ||||||||||||||||
Number of shares issued | 200,000 | ||||||||||||||||
Number of value issued | $ 876,250 | ||||||||||||||||
Additional shares issued | 2,972 | ||||||||||||||||
Additional shares issued amount | $ 14,221 |
STOCK BASED COMPENSATION (Stock
STOCK BASED COMPENSATION (Stock based compensation plans) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total share-based compensation | $ 5,283,367 | $ 4,355,639 |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total share-based compensation | ||
Twenty Sixteen Equity Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total share-based compensation | 5,085,114 | 4,288,172 |
Twenty Sixteen Equity Incentive Plan Restricted Stock Awards [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total share-based compensation | 198,253 | 67,467 |
Warrants [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total share-based compensation |
STOCK BASED COMPENSATION (Sto_2
STOCK BASED COMPENSATION (Stock option and warrant outstanding and exercisable) (Details) - Non Qualified Stock Options And Warrants [Member] - $ / shares | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares outstanding, beginning balance | 8,073,173 |
Exercise price beginning balance, minimum | $ 0.51 |
Exercise price beginning balance, maximum | 16.81 |
Weighted average exercise price beginning balance | $ 1.91 |
Number of shares, granted | 1,751,667 |
Exercise price granted, minimum | $ 4.28 |
Exercise price granted, maximum | 7.67 |
Weighted average exercise price granted | $ 5.29 |
Number of shares, expired | (37,125) |
Exercise price expired, minimum | $ 6.25 |
Exercise price expired, maximum | 8.93 |
Weighted average exercise price, expired | $ 7.13 |
Number of shares, exercised | (673,408) |
Exercise price exercised,minimum | $ 0.67 |
Exercise price exercised, maximum | 5.22 |
Weighted average exercise price, exercised | $ 0.94 |
Number of shares outstanding, ending balance | 9,114,307 |
Exercise price ending balance, minimum | $ 0.51 |
Exercise price ending balance, maximum | 16.81 |
Weighted average exercise price, ending balance | $ 2.61 |
Number of shares, exercisable | 8,113,938 |
Exercise price exercisable, minimum | $ 0.51 |
Exercise price exercisable, maximum | 16.81 |
Weighted average exercise price, exercisable | $ 2.24 |
STOCK BASED COMPENSATION (Summa
STOCK BASED COMPENSATION (Summary of Stock Option and Warrant Outstanding) (Details) - Non Qualified Stock Options And Warrants [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise prices, minimum | $ 0.51 |
Exercise prices, maximum | 16.81 |
Exercise Price Range One [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Exercise prices, minimum | 0.51 |
Exercise prices, maximum | $ 16.81 |
Number outstanding currently exercisable | shares | 8,113,938 |
Weighted average remaining contractual life | 5 years 3 months 10 days |
Weighted average exercise price of options and warrants currently exercisable | $ 2.24 |
STOCK BASED COMPENSATION (Restr
STOCK BASED COMPENSATION (Restricted Stock activity) (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares non vested outstanding, beginning balance | shares | 13,816 |
Weighted average fair value per share, beginning balance | $ / shares | $ 9.65 |
Number of shares, granted | shares | 105,854 |
Weighted average fair value per share, granted | $ / shares | $ 5.31 |
Number of shares, vested | shares | (25,367) |
Weighted average fair value per share, vested | $ / shares | $ 5.24 |
Number of shares, cancelled and forfeited | shares | |
Weighted average fair value per share, cancelled and forfeited | $ / shares | |
Number of shares non vested outstanding, ending balance | shares | 94,303 |
Weighted average fair value per share, ending balance | $ / shares | $ 5.96 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details Narrative) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | May 25, 2023 | Sep. 30, 2022 | May 16, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Common stock remaining for grants | 5,497,284 | |||
Pricing model used in calculation of grant-date fair value | Black-Scholes | |||
Expected dividend yield | 0% | |||
Expected option life | 10 years | |||
Unrecognized compensation expense related to non-vested market-based share awards | $ 3,866,879 | |||
Aggregate intrinsic value of options and warrants outstanding and exercisable | $ 23,062,130 | |||
Closing stock price of common stock | $ 4.47 | |||
Options exercised | 504,408 | |||
Proceeds from options exercised | $ 467,324 | |||
Warrants exercised | 169,000 | |||
Proceed from warrants exercised | $ 164,750 | |||
Unamortized value | $ 496,736 | $ 0 | ||
Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility | 73.70% | |||
Risk-free interest rate | 3.37% | |||
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility | 77.20% | |||
Risk-free interest rate | 4.27% | |||
Two Thousands Seven Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares authorized under plan | 10,000,000 | |||
Number of common shares available to be purchased through options issued and outstanding | 2,473,000 | |||
Two Thousands Sixteen Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of common shares available to be purchased through options issued and outstanding | 6,022,307 | |||
Common stock remaining for grants | 129,174 | |||
Exercisable period | 10 years | |||
Two Thousands Sixteen Plan [Member] | Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares authorized under plan | 8,000,000 | 3,000,000 | ||
Two Thousands Sixteen Plan [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares authorized under plan | 13,000,000 | 8,000,000 |
RELATED PARTY (Details Narrativ
RELATED PARTY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2023 | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Legal accrual to related party | $ 60,577 | $ 99,500 |
Accounting service fee accrual | 3,233 | 7,962 |
Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Travel and office expense accruals | 4,859 | 10,550 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Director committee fees | 13,500 | $ 26,400 |
Advisory Board [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and consulting expense | $ 18,000 |
RETIREMENT PLAN (Details Narrat
RETIREMENT PLAN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Expenses related to contribution to retirement plan | $ 18,554 | $ 13,498 | $ 51,413 | $ 40,585 |
Insider Trading Arrangements (D
Insider Trading Arrangements (Details Narrative) | 3 Months Ended |
Sep. 30, 2023 shares | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Fred Leonberger [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Aggregate Available | 49,000 |